Oracle Corporation (NYSE: ORCL) disclosed its fiscal 2024 second-quarter results, showcasing a noteworthy 5% year-over-year increase in total quarterly revenues in USD and a commendable 4% surge in constant currency, reaching $12.9 billion. Cloud services and license support revenues experienced a substantial uptick of 12% in USD and 11% in constant currency, totaling $9.6 billion. However, cloud license and on-premise license revenues reported a decline of 18% in USD and 19% in constant currency, registering $1.2 billion.
In Q2, GAAP operating income stood at $3.6 billion, while non-GAAP operating income reached $5.5 billion, marking an impressive 9% increase in USD and a solid 7% rise in constant currency. The GAAP operating margin and non-GAAP operating margin were 28% and 43%, respectively. GAAP net income and non-GAAP net income amounted to $2.5 billion and $3.8 billion, indicating a notable 14% increase in USD and an 11% growth in constant currency. Q2 GAAP earnings per share were $0.89, with non-GAAP earnings per share at $1.34, reflecting an 11% rise in USD and a 9% surge in constant currency.
Short-term deferred revenues reached $8.9 billion, while the last twelve months witnessed operating cash flow at $17.0 billion and free cash flow at $10.1 billion.
Oracle CEO, Safra Catz, emphasized the escalating demand for Cloud Infrastructure and Generative AI services, citing Oracle’s total Remaining Performance Obligations (RPO) exceeding $65 billion—an annual revenue surpass. The cloud businesses now boast nearly a $20 billion annual revenue run rate, with unprecedented growth in cloud services demand.
Larry Ellison, Oracle Chairman, and CTO revealed Oracle’s ambitious expansion plans—expanding 66 existing cloud datacenters and constructing 100 new ones to meet the surging demand. Ellison highlighted the rapid and cost-effective deployment of new datacenters, leveraging automation, high-performance RDMA networks, and consistent autonomous services. Notably, Oracle is set to activate 20 new cloud datacenters in collaboration with Microsoft Azure, with ongoing construction of numerous datacenters worldwide, driven by soaring demand.